AP reeling under power crunch

Coal and natural gas supply crunch has lead to severe demand supply mismatch of power generation and supply in Andhra Pradesh. The situation is similar in few other States. Significantly, the interdependence of one State on other for power generated and evacuated has come to the fore.

The month-long strike by miners of State-owned Singareni Collieries Company Ltd, in support of Telangana agitation, has disrupted the power generation. It has a cascading impact on Southern Grid and in Karnataka and Tamil Nadu in particular. With miners calling off strike late on Monday, things may partially ease up helping step up thermal power generation.

Power holiday

During September and October so far, Andhra Pradesh is reeling under severe power shortage. Industries are bearing the brunt with two-day power holiday. Domestic consumers in cities had to tackle up to 4 hour cuts, rural parts up to six hours and farm sector having to manage with one hour supply restriction as against 7 hour planned. Those with captive generation and dependent on coal supplies have been hit.

The shortage was about 36 million units per day (it was 50 mu few days ago). The peak demand now is estimated at 260-270 mu per day.

AP Transco has stepped up purchases from various sources, including unallocated pool of Central Generating Stations, Independent Power Producers (IPPs) and through arrangements with other States having to take a daily power purchase bill of about Rs 8-9 crore.

“The situation is further compounded as there is limitation to extent which power can be evacuated in the transmission grid. While the demand is about 3,000 MW, it is possible to supply only about 1100 MW,” according to Mr Ajay Jain, Chairman and Managing Director of AP Transco. This adds to the challenge of meeting the peak hour requirement, he told Business Line . Till last year, the deficit was merely 3.2 per cent and the peak deficit was 6.6 per cent. The miners' strike has meant a deficit of 15 per cent. The constraint is to run plants at optimum capacity. “We are not able to run them at optimal capacity. Of the 2700 MW of installed capacity of gas plants, 600 MW is idle. Second there is grid congestion. Somewhere the overall planning process has gone wrong,” he said.

About 2500 MW of AP Genco capacity has been impacted by lack of coal in spite of making alternative arrangements from Mahanadi Coal Fields, Western Coal Fields and purchase of imported coal. The hydel generation has dwindled as inflows have come down. The Government has no choice but to limit generation to ensure reservoir levels are maintained high.

The Managing Director of AP Genco, Mr. K. Vijayanand, told Business Line: “the situation is still critical with coal supplies available for 3 days as against 15 days we normally stock. Even this was possible by procurement of coal from Indonesia and other mines including Western Coal Fields. We have also managed to arrange coal from Indonesia.”

“The generation was about 50 per cent of thermal capacity on Saturday. But we hope things would get better. There is improvement from SCCL mines, but has to get back to normal supply. The hydel generation is about 1100 MW,” he said.

But with SCCL miners getting back to work today, the situation will get better within couple of days, sources said. NTPC Ramagundam plant is able to generate 2100 MW now of the 2600 MW capacity.

It had fallen to 1500 MW two weeks ago due to coal shortage. Since this plant supplies to southern States, all are impacted. And at NTPC Simhadri of the three units of 500 MW each, one is off production.

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